Medicare Tax on High Income - IRMAA 2024

[@waynemarch5065]

I don’t see the fairness in the IRMAA methodology. I am living off my IRA. Every withdrawal I need to withdraw an extra 20%. Then my SS is 85% taxable which then requires me to withdraw the tax amount + 20%. This year I had open heart surgery total out of pocket $9500 so need to pull out that amount + 20%. So like last year I may AGI may reach $160K but it wasn’t income when almost $40K was to pay taxes.

[@kinggeek1960]

Love the Cardinal whiteboard - simple, effective and low tech :):)

[@July.4.1776]

Cardinal 👍👍 another nice upload.

[@pauld9653]

Good overview ! Might add that you will have to file the appeal form TWICE. Once each year for two years After your Life event since irmaa looks back 2 years. Also the frustration that if you go Over the Irmaa Bracket by only $1, you will pay thousands more in premiums each for the full year. People not planning may be surprised when RMD's kick in and put them in the Irmaa penalty, or death of a spouse that puts you in the single bracket.

[@kinggeek1960]

that's why it's called the cliff

[@pch5938]

I like the sound of work reduction 👍

[@fesenal9818]

Social Security is too complicated and complex for retirees/seniors to not be able to understand and made them trapped for more taxes. Why not simplify it?

[@charliehargrave7458]

If you cut to the chase just never have a IRA or 401k unless the word ROTH is in the retirement account. which is tax free and does not add to your income.

[@swilson464]

I am in IRMAA and have been fighting to get the premium to where I think it needs to be. I retired in 2021 and went on Medicare in 2023. I got the letter and promptly appealed it and projected my 2023 income to keep me in level 2 single. I am not on Social Security but do have other retirement income. I filed my 2022 tax return in September of 2023 and had my income barely below the threshold. The IRS disallowed my IRA contribution which kicked me into the higher threshold. I appealed to the IRS and they then allowed the IRA contribution. Before the IRS allowed the IRA contribution Medicare must have gotten my tax information and promptly billed me for back premiums (approximately $1,000) and set my premiums higher. Once the IRS allowed the IRA deduction thus kicking me into the lower level I appealed to Medicare on Form SSA-44 but there is no box to check for this situation. I got rejected initially but then sent another SSA-44 in and just checked loss of pension and they accepted it and lowered my premium but have yet to give me back the $1,000. Not sure what to do.

[@johnkelly9451]

Call Cardinal Advisors their number is at the bottom on the white board?

[@shirleysanchez1866]

Did I get his clear? If my husband finally retires at 68, that would be work stoppage? So, if we had to sell 2 properties, it seems that it would be better to sell them both at the same time versus one this year and another one the next. That way in two years IRMAA can be appeal once? 😮😊

[@CardinalAdvisors]

Sell them both now. In 2025 projection in the appeal, show a lower income. Don’t let IRMAA drive all decision making

[@shirleysanchez1866]

@@CardinalAdvisors Thanks for the quick reply. You have been a great help. I guess I will have to take the hit of high capital gains now and deal with IRMAA later. 👍🙏🏼💕

[@JBoy340a]

We pay IRMAA. Even at the max It is still cheaper than buying medical insurance in your 60s or later from medical insurance provider.

[@kinggeek1960]

I assume your talking about paying for medical before 65 - aka ACA credits or obamacare vs signing up for medicare + gap/advantage + irmma

[@davidfolts5893]

Whiteboard wisdom brought to you by Cardinal Advisors.😀

[@77magicbus]

I can't believe how unfair our system is to those who work hard and save. I worked my ass off as a transit driver for over 42 years. This government system penalizes people who are single, and those who saved and invested. Now I am retired and I am paying k$450 per month more for medicare than otherwise would have.

[@sheryllegg845]

What is considered income? Social security? Wrongful death law suite settlement? Pension?

[@pensacola321]

I am in IRMMA. Next year will be 2nd level of IRMMA. With other medical cost, it sucks.

[@chrislindsay3104]

Sadly if you have to dip into an IRA to pay those medical costs, your income will go up. Then Aunt IRMAA will come around next year asking for more! It's a vicious cycle

[@kinggeek1960]

@@chrislindsay3104 that's why advisors recommend - asset LOCATION and funds that won't impact the calculations

[@OrangeBlossoms59]

My dilemna is about W2-G casino winnings. Its added to my income thus surpassing the threshold. My IRMAA is affected because of that and was told to pay double on Part B. The appeal form doesn't include this as one of the reasons. Anyone in this situation? Your advise is greatly appreciated. Thanks.!

[@johnkelly9451]

Call Cardinal Advisors their number is at the bottom of the whiteboard?

[@kinggeek1960]

Can we use HSA account funds to pay for this? We're planning on having over $100k in HSA assets by the time we retire? I believe we can pay Medicare but not gap?

[@CardinalAdvisors]

Yes you can use HSA funds to pay for Part B + Part D + IRMAA up charges

[@kevinquinlan7918]

As your income drops does IRMMA automatically adjust or does one need to appeal each year?

[@CardinalAdvisors]

IRMAA will be run for 2025 in Nov 2024 using your 2023 tax return. Every year just like that. Hans

[@kevinquinlan7918]

Thank you.

[@maichinguyen5615]

No wonder a lot of low incomes didn’t want to work cause it’s not worthy If you stay poor you will get free everything free . And will not worry about paying 😅taxes